Key Takeaways
- Strong credit and lender-ready financing profiles enable dentists to secure 100% funding for a dental practice, in addition to working capital support despite student loan debt.
- High production reports with diverse procedures and strong clinical efficiency signal revenue potential, operational discipline and readiness for sustainable practice ownership.
- Effective communication, leadership and a clear vision, combined with strategic location decisions, drive long-term growth, patient trust and dental practice success.
You’ve already worked hard in dental school to learn what you need to know to provide quality care for your patients. You’ve developed skills using the latest techniques and newest technologies, making you a master of your craft.
But are you ready to launch your own private practice or lead a dental team? While starting your own practice can bring a wide range of advantages, the skills, techniques and technologies required to run a sustainable business demand another layer of expertise.
But have no fear. Armed with the right approach, a well-thought plan and partnership with an experienced team of dental-practice business professionals — your chances of creating and maintaining a successful practice increase significantly.
PKF O’Connor Davies has over 50 years of helping dentists launch or purchase private practices to achieve the income and quality of life they expect as masters of their trade. We can help you too.
Over the years, we’ve seen time and again certain characteristics that indicate a dentist is ready to transition from associate to business owner. We share seven with you today to help you gauge your readiness now or work toward accomplishing in the future.
7 Signs You’re Ready to Own a Dental Practice
1. Good Credit
Good credit is required to obtain financing. With a solid credit score, many health care specialty lenders will finance 100% of a new practice purchase or start up. This is true even if you have student-loan debt. Specialty lenders will sometimes add an additional working capital loan to help with cash flow in the initial months of ownership.
2. High/Diverse Production Reports
High production with a diversity of procedures indicates a skilled dentist with trusted patient relationships. Lenders often review production reports to make that assessment. Dentists with a good mix of preventative and restorative procedures demonstrate technical skills that will help generate revenue for the practice.
3. Quick Hand Speed
Hand speed matters. It’s not just moving fast. It is also about working efficiently, confidently and with purpose. A new dentist who can complete a quadrant of restorative work in one visit instead of two is going to serve patients better and keep the schedule on time. As an owner, time is money. Improving your clinical efficiency will have a direct impact on your bottom line. Hand speed isn’t taught in dental school; it’s developed through repetition, mentorship and efficiency.
4. A Focus on Practice Location First
Too many new dentists make the mistake of choosing where they want to live before they determine where they want to work. This can result in limited growth opportunities, long commutes and a decreased quality of life or income. The better path is to identify a practice or community where you can build something sustainable — and then figure out where to live. Ownership is a long game. You’re building a career and business, not just creating a job.
5. Strong Communications
Dentists who communicate with clarity and confidence earn trust faster. They build stronger relationships with patients, motivate their teams and are better at educating patients about their oral health care needs. Strong communication is about being clear, honest and listening well. As a practice owner, you need to be comfortable talking about money, treatment options and goals. Communication is not just with patients, but with your team, professional advisors and vendors.
6. Solid Leadership
A good leader will set the tone for their practice. As a practice owner, the team will take cues from the leader. How you treat people, handle stress and follow through on commitments are some of the examples that can set the tone for leadership. Are you consistent? Do your actions reflect your words? Are you willing to do what you ask others to do? Leadership is something you earn every day by setting the example you want others to follow.
7. Vision Beyond Ownership
Being the boss, creating your own work schedule and building practice equity to sell in the future are certainly some benefits of ownership. But there are other, more profoundly important drivers that motivate great dentists. What will the practice be known for? Quality care, welcoming environment and trusted relationships are better reasons for a practice to exist. The initial decision on how the practice will operate provides guidance throughout your career that will offer inspiration to get up every morning, head to the office to care for your patients and lead your team. Your vision helps you choose the right location, team, equipment, marketing strategy and patient experience. It also helps you stay focused when presented with challenges. If your only goal is to get rich, you’re not ready. But if you’ve got a clear picture of the kind of dentist you want to be and how you will care for your patients and community, you’re ready … and your hard work will yield many positive returns. Practice ownership isn’t just a career move — it’s an opportunity to shape your future and make a difference in your community. That’s the winning vision.
Contact Us
If you see yourself building on these characteristics, it might be time to take the next step toward ownership. Surround yourself with mentors, advisors and professionals like those from our Dental Practice Accounting and Consulting Team who have a deep understanding of your journey. For more information, please contact your client service team or:
David J. Goodman, CPA, MST
Partner
Dental Practice Leader
dgoodman@pkfod.com | 201.712.9800